At 10:25 am, investors bid only for 2,99,67,957 shares of the company, out of a total issue of 10,71,05,262. The company is selling its shares in the price band of Rs 285-291.
The Rs 5,550 crore IPO was subscribed merely 28 per cent in early hours on the third day.
The tepid reponse from the investors is hinting that the IPO’s rich valuations are proving to be a deterrent. The company’s IPO is roughly valued at 76 times one-year forward earnings, making it one of the most expensive issues to hit the primary market in recent times.
Despite the rich valuations, analysts are bullish on the counter. They said Sona BLW is a play on the electric vehicle theme. While the IPO valuation appears rich, the auto component maker is a consistent performer, they added. Most analysts recommended ‘subscribe’ to their clients on the IPO.
The company had raised Rs 2,500 crore from 42 anchor investors on Friday.
The issue comprises up to Rs 300 crore worth of fresh equity and an offer for sale of shares worth Rs 5,250 crore by Singapore VII Topco III Pte, an affiliate of Blackstone.
